The main problem is the high cost of accepting non-cash payments for retailers of goods and services available on the payment services market today, the CEO of CryptoPaymentSystem Vladimir Goloborodko believes.
The CryptoPaymentSystem project won the Startup Battle, which Startup.Network team hosted in Minsk (Belarus), and they are already preparing a glorious conquest of Silicon Valley at the Intercontinental Startup Battle.
Tell us more about the CryptoPaymentSystem project, please
It’s a payment system that will simplify and reduce the cost of non-cash payments by removing unnecessary intermediaries. It allows you to make secured blockchain-purchases directly from your smartphone, using the currency you are familiar with, like rubles, dollars, etc.
What problem does the project solve in the market?
The main problem is the high cost of accepting non-cash payments for sellers of goods and services. I have an online store, and from every 100 units of revenue I have to pay about 3 units for the possibility of accepting payments via bank cards. It turns out that I have to give 30% of my profits to intermediaries due to banks, payment systems and so on, in fact, just for the transfer of money to my account. It’s not surprisingly, that 60% of sellers still continue to accept only cash payments, due to high commissions.
Which market are you targeting?
The target market is the whole world with an amount of card payments of $55 trillion by 2025 and all mobile subscribers, which is already over 5 billion. The pilot market for the launch in terms of geography – the CIS countries. Despite the fact that the CIS is only 1% of the global market, it’s nevertheless much clearer and closer to us.
Do you have any competitors? Who are they? Are they better than you?
We offer an alternative to current traditional payment systems such as Visa, Mastercard, Paypal and, being realistic, we never set a goal to become the next “slayer of VISA”, but we have all sorts of chances to be an additional method of payment, offering lower commissions and working opportunities with traditional currencies and cryptocurrencies.
On the other hand, we aren’t the only ones out there. In the field of a new generation payment systems, which are based on the blockchain, there is, for example, Monetha or UTrust. They were financed for $20-30 million during their ICOs, despite the fact that they offer payment options only in the cryptocurrency, immediately cutting off 99% of potential buyers and sellers who live in the regular world of rubles and dollars.
Moreover, it will be extremely easy for our client to use all financial services from his phone. For instance, to purchase cryptocurrency, it will be enough to make a couple of clicks, instead of intricate and lengthy processes that most platforms offer today.
How did the idea of participating in Intercontinental Startup Battle, Silicon Valley come about?
This is not just an idea, but part of a conscious strategy. Firstly, investment opportunities and a full-fledged infrastructure for development of startups are not really in the CIS yet, but more so in the USA. Secondly, most technological projects are oriented on a global level, because the CIS is only 1% of the world market. In order to even begin to explore it, you need to have that personal presence. So in April we’ll fly in for the program of Startup.Network, which will provide us with introduction to Silicon Valley, acquisition of the necessary network, broader understanding of the situation there and adjusting of the strategy from that point on.
What is the strategy for entering the US market?
The US is about a quarter of the global economy, more than 300 million people, more than half of them are middle class with incomes of $ 50,000. Obviously, for any global project, this market is one of the main targets.
Our strategy involves the development of new markets in conjunction with regional representatives, because on every market, having existing contacts is extremely important. Moreover, in B2B business, the cycle of making a deal with operators can last for months or even quarters, so it’s super important for us to enlist the support of representatives in the US and begin the dialogue now, while we are piloting the solution in the CIS. The involvement of mentors in our project is also one of the goals of taking part in Intercontinental Startup Battle, Silicon Valley.
What are the next steps?
We have the following tasks for the upcoming months: the expansion of the technical team, development of the alpha version, the finalization of arrangements for the launch of pilots with operators, active development of our network and a search of partners for the ICO.